§ Mr. Fauldsasked the Chancellor of the Exchequer whether, following his written answers to the hon. Member 266W 1965, 1975 and after the introduction of his present Budget proposals, all expressed at estimated November 1980 prices.
§ Mr. Peter Rees[pursuant to his reply, 22 April 1980, c. 125–26]: At estimated fourth quarter 1980 prices, the taxes were about:
for Warley, East, Official Report, 6 July 1979, c. 773, Official Report, 31 October 1979, c. 525, and Official Report, 12 February, c. 601, an administrative decision has been reached regarding the recommendation in the third report (Session 1977–78) of the Environment Sub-Committee of the Expenditure Committee relating to the waiving of interest charges in respect of the value of works of art and museum objects if and when these are accepted in lieu of capital transfer tax; and whether he will now make a statement in this regard, with particular reference to the circumstances specified in the question to him from the hon. Member for Warley, East on 6 July 1979.
§ Mr. Peter Rees[pursuant to his reply, 14 April 1980, c. 517]: The Government have decided not to accept the recommendation in the third report (Session 1977–78) of the Environment Sub-Committee of the Expenditure Committee relating to interest charges. The property which gives rise to the tax charge paid by the acceptance of works of art and other heritage objects is not those works or objects themselves but other property. The works or objects are accepted in lieu of tax on other property at their value at the date of their acceptance—not at the date of death—so that the owner of the object obtains the benefit of any increase in value between the date of death and date of acceptance; this may very well more than compensate for the interest arising on the tax due on the other property. There is no inducement, therefore, to an executor 267W to sell works or objects on the open market in order to raise funds to pay tax rather than to offer them in lieu even where—and it need not always be the case—the " in lieu " procedure takes longer.